von Stackelbergs equilibria for BertrandEdgeworth duopoly with buyouts

Solves von Stackelberg equilibria in a BertrandEdgeworth duopoly game. Shows that, initially, the environment is characterized by efficient rationing and capacity constraints. Since interest lies in sustaining monopoly outcomes from noncooperative behaviour, introduces the buyout option, where rivals can absorb one anothers output before any consumer. Reveals that the outcomes change drastically in that players together are able to reach the monopoly profits.